A clean claim isn’t a fully paid claim

We analyzed 630 million claims to find where provider revenue leaks — and how much you can stop.

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What 630 million professional claims reveal about where provider revenue actually leaks

Revenue leakage is more than a denial problem. Across denials, underpayments and recovery, money leaves the system in ways standard reporting never surfaces, including on claims that were accepted, adjudicated and paid. Here’s where it goes, and where you can stop it.

  • Finding #1: Denials stay high

    Our analysis put the average denial rate at 14.6% across all payers — nearly three times the 5% benchmark — with Medicaid products spiking to 20–23%.

  • FInding #2: Paid isn't paid in full

    Even adjudicated, “paid” claims leak revenue. Underpayments hit 4.9% of claims and pay 27% below the allowed amount when they occur — and most teams can’t see it by payer.

  • Finding #3: Recovery misses the risk

    Recovery rarely tracks where the risk is. Across payers it averages about 29%, leaving roughly 70% of contested revenue on the table — and its weakest for Medicaid, which carries the highest denial burden.

  • Finding #4: Most denials are preventable

    More than half of top denials come from process and accuracy gaps, not clinical findings — and over 66% start in the front-end and mid-cycle, before a claim ever leaves your organization.

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Data methodology

Based on Cognizant’s TriZetto® Advanced Reimbursement Manager (ARM) platform, linking 837 claim files to corresponding 835 remittance data at scale.

The analysis evaluates denial patterns, payment accuracy, recovery  performance and payer behavior using real adjudicated claim outcomes, not estimates or surveys.

+630 milllion

Professional CMS-1500 claim and their respective Explanation of Benefits

Five-payer mix

Includes commercial, Medicare Part B, Medicare Advantage, Medicaid, Medicaid Managed Care

Three-year study period

Analyzed data from the years 2023-2025

All practice sizes

Data derived from physician practices ranging from solo providers to extra-large groups

Go deeper: preventing revenue leakage before it starts

Beyond the numbers, see how a prevention-first revenue cycle with front-end controls, payment-accuracy detection and payer-specific recovery helps you retain more of what you’ve already earned.

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